• Paraguay a strategic green Energy investment in a growing economy

• Family Offices investing in green Energy due diligence and risk management

• Energy & the Monthly check from bitcoin miners

If there's one certainty in the global market for the coming years, it's that energy consumption will increase. The surge in AI development is driving a significant demand for energy, and we're already seeing market saturation. There's a scarcity of suitable land and energy infrastructure for building new data centers, with waiting lists extending for years, particularly in the US and EU. When you factor in the 2030 energy transition targets, along with the need for affordable energy to support the massive computational needs of AI, renewable energy becomes one of the planet's most scarce resources at present.

Deloitte 2024 Family Offices report, has highlighted that half of family offices invest in Energy and when it comes to clean energy they are not looking at financial returns but also at how their investments can contribute to economic growth, particularly in booming economies.

Following this trend, Paraguay presents a strategic investment opportunity in the energy sector. A stable and growing economy, the modernization and expansion of its hydroelectric resources, billions in foreign investments for the ITAIPU dam upgrade. It is the country of choice for purchasing affordable land and investing in profitable energy businesses.

Combining Paraguay’s abundant hydropower with sustainable bitcoin mining and its forward-looking economic policies, ensure the profitability of the energy business. Green bitcoin mining flexible load balance the grid, drives scalability, foster innovation, long term returns, and create lasting value for the country.

Paraguay Growing Economy

Paraguay boasts a small but increasingly open economy that has averaged a 2.8 percent annual GDP growth over the last decade, with potential for further expansion in the next ten years. Its GDP is estimated at $45.5 billion, with a per capita GDP of $5,947, making it competitively positioned among its regional peers. This GDP is comparable to that of Indonesia, though slightly higher.

Major drivers of economic growth in Paraguay are the agriculture, energy, retail, and construction sectors. 

It is a country with significant investment opportunities, recently achieved through robust economic and fiscal policies similar to those of successful Eastern European economies, enhancing its attractiveness to investors.

Paraguay economic grow 2023/2024 compare to Brazil Argentina, Mexico, LAC

Key Energy Resource

Paraguay energy sector is heavily reliant on hydroelectrical power within ITAIPU and Yacyreta Dam. Comparing with Norway and Canada are also relied on hydro power but on a smaller scale. Paraguay is one of the top electricity exporters globally similar to how Norway export power to Europe. Paraguay has the renewable energy per capita highest in the world benign one of the top electricity exporters. Hydroelectric power in Paraguay is a sustainable energy source mirroring the renewable energy strategies seen is in seen in countries like Iceland and Bhutan.

With 14 GW capacity ITAIPU is one of the largest in the world with it’s a crucial power station between Paraguay and Argentina.

ANDE (National Electricity Administration) is the state own utility comparable to Germany Rewe or Red Electrica in Spain. It manage all aspects of electricity generation transmission, distribution, and integrating renewable source, similar to Germany's initiative, collaborating closely with Government body, and foreign partners.

Paraguay Energy Infrastructure

ANDE is investing approximately 300 million in expanding the electrical infrastructure with project focusing on building new substations and upgrading existing ones with one of the largest projects involves a 500 million investment in expanding transmission Network. This key transmission lines are very important for the stability of the system smart grid implementation.

• Construction and upgrade

• Equipment supply

• Renewable Energy and Smart Grids

• Public-Private Partnership (PPPs)

Growing Demand

Paraguay has a growing rate of the electricity consumption of about 10% per year this means that effectively duplicate the electrical Grid in in 10 years. There is a significant demand for Advanced Equipment for Hydro power plants and GD system particularly in the ongoing modernization comparable to the growing market for energy equipment in Eastern Europe renewable energy, with the global shift towards renewable energy 

Engaging through public private initiatives can facilitate joint ventures, risk sharing, and access to government resources, and incentive. This model has been successful in countries like Turkey and Brazil where these initiatives have played a pivotal role in infrastructure development. 

Case Study

GE renewable energy ITAIPU upgrade recently signed a one billion contract for the largest technological upgrade of the hydro power plant which will span 14 years and include modernization of 20 power generation units. This enhancement are expected to boost efficiency reliability and output ensuring ITAIPU to remains the key Energy supplier for Brazil and Paraguay.

Challenges and Risk Mitigation

Paraguay regulatory landscape can be challenging requiring a deep understanding of local law. Political stability and lack of skilled labor in the energy sector particularly in Advanced Technologies are the other main factors that can affects the success of businesses in the energy sector.

The strategies that companies should apply to mitigate these risks are: engaging in strong local partnership and conduct comprehensive due diligence while implement robust risk management.

Paraguay’s Forward-looking Economic Policies

Political stability is crucial for long-term investment. The current President, Santiago Peña, assumed office in August 2023 for a 5 year term.

The new president, President Santiago Peña has been actively engaged during Trump’s inauguration weekend, participating in several key events and meetings: Attended the official inauguration as the first Paraguayan President invited by the White House.

Profitably & Risks Management

Considering Paraguay's susceptibility to climatic conditions affecting both agriculture and hydropower generation, how lucrative could it be to establish an energy station there?

Incorporating bitcoin mining into an energy station business offers advantages such as grid stabilization or off-grid power options, alongside a guaranteed buyer of electricity that pays monthly, securing profitability.

Strengths

Green energy source, potential for high profitability, relatively quick payback period.

Weakness

Dependence on water availability

Risk mitigation: Energy Demand Flexibility & Arbitrage

Hydro plants often generate excess power, especially during off-peak hours or rainy seasons. Bitcoin mining act as virtual battery giving back to the grid the electricity stored when scarce
✅ In case of high electricity demand, you can prioritize selling energy and still maintain profit stability.

🚀 Hybrid Model:

• If Bitcoin price is high, prioritize mining.

• If electricity prices rise, sell to the grid for stable revenue.

• Maintain a balance between fixed PPA sales & mining flexibility

✅ Instead of selling at low rates to ANDE, you could use excess electricity for mining and earn much higher profits also because you get newly minted bitcoin that can be sold at premium or hold which value appreciate over time
✅ Bitcoin mining can act as a "buyer of last resort", consuming unused power efficiently.

Weakness

Regulatory and political risks

Risk Mitigation: a favorable tax and regulatory regime

✅ Paraguay is becoming a crypto-friendly hub with cheap electricity and mining incentives.
✅ Some regions offer tax benefits for crypto-related investments.
✅ Regulatory clarity: Paraguay has legal frameworks for mining operations, unlike other countries that have banned it

Opportunities

growing energy demand in Paraguay, potential for carbon credits or other incentives

ESG & Green Bitcoin Advantage

✅ Investors are shifting toward sustainable Bitcoin mining ("Green Bitcoin").
✅ Hydro power ensures zero carbon emissions, making it attractive to ESG-conscious investors.
✅ You could sell Bitcoin at a premium to companies prioritizing green energy sources.

🌱 Marketing opportunity:

• Branded as "100% Renewable Bitcoin Mining", attracting investors & partnerships.

Diversification & Hedge Against Bitcoin Volatility

✅ Traditional miners rely only on Bitcoin price movements, making them vulnerable.
✅ By owning both the hydro plant & mining farm, you can pivot strategies depending on market conditions.
✅ You still have a stable income from electricity sales even if Bitcoin mining becomes less profitable.

Threads

changes in energy policy, fluctuations in energy prices, environmental or social opposition

Rick Mitigation: external ricks can’t be prevent, but as benchmark, the biggest industrial miners like HIVE and Marathon, have decided to extend their operations in the country. HIVE, the first company of the industry (2016), recently acquired additional 200MW to be added to the already existing 100MW in order to grow into green energy.

Conclusion

Final Verdict: A Powerful, Profitable Combination

✅ Hydro power + Bitcoin mining = Maximum profitability & risk diversification.
✅ Low electricity costs give a major competitive advantage over global miners.
✅ Flexibility to switch between energy sales & mining ensures financial stability in any market condition.

Call to Action

• Refine your assumptions: Conduct thorough research and get expert advice to refine your assumptions, especially regarding energy price, capacity factor, and O&M costs

• Sensitivity analysis: Perform a sensitivity analysis to assess the impact of changes in key variables on your profitability

• Detailed financial model: Develop a detailed financial model that includes all costs and revenues over the project's lifetime.

• Schedule a call to connect with Paraguay’s energy, land, and bitcoin mining investments opportunities